BACKGROUND

Alternative contracting methods (ACM) are alternatives to the design-bid-build contracting method for transportation infrastructure. ACM use combinations of price and non-price parameters such as qualifications, experience, schedule, and approach to select infrastructure project teams. Examples include design-build (DB), construction manager/general contractor (CM/GC), and public-private partnerships (P3). ACM use has been shown to optimize the delivery of projects in terms of time, cost, and realization of public objectives. 

While ACM use is increasing, ACM account for a small portion of overall project delivery among state departments of transportation (DOTs). Also, most of the completed ACM projects have been large in size and complexity, with costs typically exceeding $20 million. For smaller projects, ACM use on highway-related projects such as roads, bridges, and intelligent transportation systems, has been less documented. In some states, limited ACM use stems from more frequent use of ACM for large projects and concerns that ACM may hinder participation by smaller, local companies. 

To expand the use of ACM for smaller projects, a better understanding of the following is needed: small project characterization; factors affecting the scope and duration of the procurement process; appropriate allocation of risks based on project size; factors affecting cost effectiveness for owners and contractors; and benefits and challenges to owners. Research to date, including NCHRP research, has focused on projects of all sizes, not specifically on small projects that face their own unique challenges, such as (1) lack of ACM experience among local design and construction companies; (2) duration and cost associated with the ACM procurement process; and (3) attracting private financing for small projects that enables the private entity to achieve an adequate return on investment. Research is needed to address the unique challenges associated with using ACM on smaller projects. 

OBJECTIVE

The objective of this research is to develop a guide for state DOTs and local agencies on evaluating the potential use and benefits of ACM for small projects and effectively implementing ACM for small projects. 

Accomplishment of the project objective(s) will require at least the following tasks. 

TASKS 

PHASE I 

Task 1. Review literature on ACM use. Collect and analyze relevant literature on ACM use, especially on small highway infrastructure projects. Preparation of the guide assumes that individual state DOTs and local agencies are familiar with their own legal and regulatory requirements; hence, legal considerations in the literature review should be limited to those directly related to the research objective. 

Task 2. Develop a stakeholder outreach plan. Develop a plan to collect data from the transportation industry on the challenges and opportunities of using ACM for small highway infrastructure projects. Outreach should include stakeholders that are mature in ACM use. Submit a technical memorandum (#1, hereafter “tech memo”) including the results of Task 1 and the plan developed in Task 2. NCHRP approval of the tech memo is required before work on subsequent tasks may begin. 

Task 3. Administer and summarize the stakeholder outreach plan. Submit a tech memo (#2) summarizing the results of the stakeholder outreach. NCHRP approval of the tech memo is required before work on subsequent tasks may begin.   

Task 4. Develop a draft plan for guide development. Using the findings from Tasks 1 – 3, the plan should explore implementation processes for various ACM, identify successes and lessons learned, select case study projects, and explain how case study projects would be used in the guide. 

Task 5. Submit an interim report. Prepare an interim report summarizing the results of Tasks 1 – 4 and including a detailed outline for the guide. The interim report shall be presented to NCHRP at an in-person meeting in Washington, D.C., with panel travel costs to be paid by NCHRP. NCHRP approval of the interim report is required before work on Phase II may begin. 

PHASE II

Task 6. Prepare a draft guide for the use of ACM on small projects. Submit the draft guide for NCHRP approval. NCHRP approval of the draft guide is required before work on subsequent tasks may begin.  

Task 7. Conduct and summarize a practitioner workshop. Obtain practitioner and industry feedback on the draft guide in an online workshop. Summarize the workshop in an online debrief with NCHRP, including any recommended changes to the guide. Any proposed changes must be approved by NCHRP. 

Task 8. Submit an updated draft guide. The updated draft guide will be reviewed by NCHRP before its submittal in Task 9. Additional review time should be allocated to this task to allow for iterative review. NCHRP approval is required before work on the final task may begin. 

Task 9. Submit final deliverables. Deliverables shall include the final guide, a conduct of research report summarizing the entire research effort, an implementation memo, and a slide presentation summarizing the research. 

STATUS: Research is in progress.